Last Updated on January 24, 2023 by Faiza Murtaza
Canara Bank is the fourth largest, Public Sector Bank in India. It focuses on customer needs and goals. The bank fully supports the general public to meet their financial challenges—gold loan accounts as an unusual vertical in the bank.
Despite the relaxation norms, the entire country has come to a standstill. In these challenging times, one of the issues that haunt consumers is the issue of liquidity. Big or small businessmen have felt the impact of lockdown. While the prominent businessman is struggling to revive their business, the micro-enterprises have been shut down. Thus, the common problem of having adequate finance for the livelihood is something everyone needs to deal with.
While other borrowing methods do not seem to produce any fruitful results, a gold loan is one option borrowers and financial institutions are looking to explore. It is expected that the gold loans are going to fill in the requirement of funds. The Canara gold loan is one of the most popular options.
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Why are gold loans an ideal choice for the borrowers?
A major significant proportion of Indian households have gold lying idle with them, and it seems to be a secure and easy means of availing finance. You can get a gold loan against the security of the gold asset. There are no end-restrictions on end-use of gold loan, and further, it can be availed at low gold rate and affordable schemes.
With the expanding online gold markets, the demand for a gold loan is further going to rise in the nearby future. The digital gold markets are explored by both banking and finance companies, where finance companies are playing an upper hand in controlling the gold markets.
Read More: 5 Golden Tips to Increase Your Personal Loan Eligibility
What are the significant steps were taken by key players in the gold market:
Canara Bank, which is the fourth-largest public sector bank, is also exploring the gold markets. Recently, it introduced a gold campaign where it aims to provide a gold loan at a lower interest rate at about 7.85%. The gold loan is available for use for agriculture and allied activities, business needs, health emergencies, and personal needs, among others at all the designated branches of the bank pan India. The other highlights of this gold loan campaign include the low-turnaround time for applying for loan to the approval of a loan to sanctioning of the loan. Canara bank aims to provide the hassle-free experience of reviving the business activities with the quick processing of a loan.
In the words of General manager of Canara Bank “Gold, a precious commodity, is widely held by Indians as a family asset in the form of jewellery and coins, but is seldom leveraged for monetary requirements. In times of need, this asset can be utilised to avail credit to support emergency cash requirements.”
Here are some of the gold loan products of the Canara Bank:
- The farmers can avail the gold loan for agricultural activities, including crop cultivation. They can avail the gold loan up to Rs. 10 Lakhs.
- A gold loan can also be taken for allied agricultural activities for up to Rs. 20 Lakhs.
- Personal gold loan scheme, known as ‘Swarna Loans’, can be availed for any purpose up to Rs. 20 Lakhs.
- Further, farmers can also avail the overdraft facility.
- Gold Loan can also be used as a form of a Personal Loan. People can make use of the money for the purpose of medical expenses, saving your moeny for your business. Gold Loan works best at the time of unforeseen commitment or any form of contingency that may occur.
- Personal loan scheme ‘SWARNA LOANS’ can be availed to meet medical expenses, domestic expenses, business expenses or any unforeseen commitments/ contingencies that may arise. The maximum permissible limit is Rs.20 Lakhs.
- Personal loan scheme ‘SWARNA LOANS’ can be availed to meet medical expenses, domestic expenses, business expenses or any unforeseen commitments/ contingencies that may arise. The maximum permissible limit is Rs.20 Lakhs.
The government has announced an emergency credit line. There will be an annual turnover cover of around RS100 crore. The central government has duly regulated such a provision. The facility can be availed latest by the date of October 31. The terms and conditions are also duly attested.
The bank has made a provision looking at the present condition. There is a total of rs 150 crore capital is assigned. Such a facility is given for a period of 24 months with a 6 month moratorium. The entire loan structure is revised and has been made very competitive. There will be no processing charges , no margin and no additional security.
Apart from this the bank has also raised Rs 60,000 crore of advance to the corporate and the MSMEs from the month of March 200 till date.
The bank is making full efforts by reaching out to the people using SMS, call-centre, emails, personal calls.
Steps taken by other key players:
The Tamil Nadu State Apex Co-Operative Bank Limited also introduced the gold loan scheme for the citizens at a lower rate of interest of 6%. Under this scheme, the bank will evaluate the value of gold 10% higher than the standard value of the gold. Also, the borrowers can repay the loan with an additional grace period of 3 months.
Conclusion: With the easy availability of gold options along with the attractive gold loan schemes offered at a lower interest rate, the demand for gold loans is likely to increase as the online gold markets will be strengthened in the coming time.
